China ex central bank adviser proposes massive $1.4 trillion stimulus package
China is considering issuing ultra-long-term treasury bonds in the next two years to inject a stimulus of at least 10 trillion yuan ($1.4 trillion) into the economy, as suggested by a former Central bank adviser. The focus should be on implementing various measures such as enhancing social protections, purchasing unsold apartments for affordable housing, and accelerating urban construction. It is emphasized that China’s macroeconomic policy should prioritize stability and balance during a “medium-speed growth stage”, rather than replicating the quantitative easing strategies of developed countries. To address the challenging growth target of around 5% this year, Chinese policymakers are expected to implement measures aimed at boosting demand in order to combat deflationary pressures. Despite a fragile recovery in China’s export-led economy, domestic demand continues to face obstacles amidst persistent deflationary risks. The current exchange rate is $1 to 7.0505 renminbi.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.